The survey shows the number as of June 14 was 8.48 percent of servicers’ portfolio volume, down from 8.55 percent the prior week.
The MBA estimates that 4.2 million Americans are now on forbearance plans, down from 4.3 million the prior week.
The surveys have been conducted since March as a way to measure the amount of people paying their loans.
The number of Fannie Mae and Freddie Mac loans in forbearance has fallen for the second week in a row, now sitting at 6.31 percent, a 7 basis-point improvement. The forbearance share for portfolio loans and private-label securities (PLS) fell 19 basis points to 9.99 percent, and Ginnie Mae loans in forbearance stayed steady at 11.83 percent, according to the release.
Mike Fratantoni, MBA’s senior vice president and chief economist, said the decline was mostly led by drops in government-sponsored enterprise (GSE), portfolio and PLS loans, where more borrowers exited than entered forbearance plans. Fratantoni said the development showed a progression in terms of the economy.
“Fewer homeowners in forbearance underscores the continued improvements in the job market and provides another sign of the fundamental health of the housing market, which has rebounded considerably over the past several weeks,” he said, according to the release.
Fratantoni also said that it is unknown, however, how much of the improvement came from government aid from the CARES Act and other financial aid measures.
“We expect to see further improvements in the weeks ahead given the drop in forbearance requests this week,” he said in the release.